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Here are the highlights of Sebi's order in NSE co-location case

Here are the highlights of Sebi's order in NSE co-location case

Here are the highlights of Sebi's order in NSE co-location case
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By CNBC-TV18 Apr 30, 2019 11:38:59 PM IST (Updated)

Markets regulator Securities and Exchange Board of India (Sebi), which has been probing the alleged misuse of high-frequency trading offered through  National Stock Exchange's co-location facility, on Tuesday directed the leading stock exchange to disgorge more than Rs 625 crore. The exchange has also been barred from the securities market for 6 months.

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The order said that the NSE did not exercise due diligence while putting in place Tick-by-Tick (TBT) architecture and directed the exchange to frequently carry out system audits.
Besides, Ravi Narain and Chitra Ramkrishna, two former chief executive officers of NSE, have been asked to disgorge 25 percent of their respective salaries drawn during a certain period.
Here are the highlights from the order:
  • NSE shall disgorge Rs 624.89 crore with 12 percent interest from April 01, 2014 onwards to the Investor Protection and Education Fund (IPEF) within 45 days.
  • NSE will be prohibited from accessing the securities market, directly or indirectly, for six months.
  • NSE shall re-form its Standing Committee on Technology at regular intervals and frame a clear policy on administering whistleblower complaints.
  • Ravi Narain shall disgorge 25 percent of the salary drawn for FY 2010-11 to 2012-13, to the IPEF within 45 days.
  • He will be prohibited from associating with a listed company or a Market Infrastructure Institution or any other market intermediary for 5 years.
  • Chitra Ramkrishna shall disgorge 25 percent of the salary drawn for FY 2013-14, to the IPEF within 45 days.
  • Ramkrishna will be prohibited from associating with a listed company or a Market Infrastructure Institution or any other market intermediary for 5 years.
  • NSE shall initiate an enquiry under its Employees Regulations against Mahesh Soparkar (head of NSE's Project Support and Management (PSM) team during 2009-13) and Deviprasad Singh (head of NSE's Project Support and Management (PSM) team during 2013-16) and submit a report to Sebi within 6 months.
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